Institutions= set of rules. Rules = are derived from chaos situations; =consist in opportunity costs patterns for alternative goals; =pattern of behaviour which tell smth about how individuals should make order when they face chaos situations.
Patterns – Diffs; Searle. Opportunity – the things you sacrifice when taking an action; they are derived from individual actions; they are influencing the behaviour of others because they are able to produce costs.
Opportunity cost for obeying/breaking the rules. There are different situations, circumstances for obeying, while for breaking the rules there are almost the same circumstances.
Corruption=playing by other rules;
Sources that produce opp. costs: the authority (rulers) and the players (ruled)
Rules can be emerged or created. We can have emerged rules because of different actors have patterned opp. Costs and individuals behave in a paternal way. Each time we want to enforce rules that are inconsistent with the power structure of the players, the rules will hardly be enforced. Rules consist in opp. Cost patterns for opp. Human goals.
